Leveraged Shipper Relationships
Fulfillment centers use overall volume to negotiate discounts with freight carriers. This allows fulfillment companies to spread shipping and handling costs across all their clients. Taking advantage of these discounts will help offset the costs of hiring a fulfillment center.
Consider the other services a fulfillment company may offer. Not only are there fewer administrative costs by having all of the work performed in one location but design, printing and direct mail services are usually less expensive in the Midwest than on either the West or East Coast. Partnering with the right fulfillment company can result in unexpected costs savings in other areas.
Kitting and Assembly
Many fulfillment centers offer the ability to assemble various components into bundles or packages. Kitting not only allows for additional sales opportunities but packaging pieces together before sending to the end user can help save on shipping costs.
Safety and Training
Quality fulfillment centers train their employees on products, processes and safety. This means you have a happier customer because they will receive exactly what they ordered. Safety is another important area of training. All customers share training costs which means a lower per-unit cost for you.
Too often, storing products or shipping materials consumes valuable space. Fulfillment companies make incredible use of space and can share materials and staging areas amongst several clients. This is a great way to reduce your overhead costs.
Fulfillment centers have strategies in place to accommodate both slow and busy times for all of their customers. When workers enjoy more consistent hours, they develop better skills which help to ensure your orders ship correctly, in a timely fashion, and at lower costs. This is especially important to seasonal businesses which have peak shipping times.
Management Time Spent
Getting the product into the customer’s hands is only one piece of the puzzle. Putting this step into expert hands allows companies to focus on marketing and other strategies to help grow the business.
Fulfillment services work with you to control your inventory so that you don’t accidentally sell something you don’t have in stock.
In short, no matter how many or how few packages you send a month, using professional fulfillment services may be the perfect solution for your business.